5:43 am July 24, 2009, by Henry Unger
Will the stock market’s momentum continue?
The Dow Jones industrial average closed above 9,000 Thursday for the first time since January.
Behind the enormous rise of more than 2,500 points in four months, topped by a 188-point gain Thursday, is a growing belief that profits at many companies are starting to bounce back, the New York Times writes.
The future? That depends on how the economy performs.
Some economists, the Times says, caution that any economic recovery could falter, resulting in a double-dip recession that would extinguish the recent market rally.
Others are bullish on the earnings’ prospects of many blue-chip companies, given all the cost-cutting and productivity gains that have transpired.
Of course, much of the cost-cutting has driven up unemployment — and those numbers will continue to rise. Metro Atlanta’s unemployment has skyrocketed to 10.7 percent.
With double-digit unemployment, many believe it will be a very long, rocky road before the Dow returns to where it was.
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